There may a situation when a mortgager (borrower) does not repay the loan due to several reasons such as factory lockup, fired from service, family dispute involving a divorce, unprecedented medical expenses and death. Under such situation the lender is free to take possession of the mortgaged property and he can sell it to recover his dues. This is called foreclosure.
Before that the lender will file a public default notice against the borrower known as Notice of Default and the borrower restores the loan by paying off the default amount during a grace period usually determined by state law. It is called a pre-foreclosure. The mortgage borrower manages to sell the assets to someone willing to buy, this pre-foreclosure phase. The sale made will allow him to repay the loan and thereby avoiding a foreclosure in their credit history. But if he cannot sell his property during the pre-foreclosure phase, the lender will own the property, and he has the right to auction it.
According to an estimate as of July 2007 the US home foreclosures are rising like never before and it is about 58% during the first half of the year 2007. This also opened another investment market called Foreclosure market and people started seeing at it as a great investment opportunity
While it is really so, one has to invest in it wisely and prudently. The competition in the foreclosure markets too is extremely high. People who wish to invest in foreclosure homes are hunting through the pre-foreclosure markets to locate the best deals. It is actually a win-win situation for the defaulter who is selling the home during pre-foreclosure period as well as the investor who would want to invest in one. So, a smart investor would first approach a seller directly, who is ready to sell the property before his foreclosure is announced.
Identifying a good deal is the greatest of challenges in the foreclosure market and one has to be astutely looking for deals in un-invaded markets or markets that do not have competition. However, there is also one risk involved. Such investments are not always appreciated.
While a foreclosure investor can really enjoy the leverage created by the real estate allowing the investors to do some risking on the investment along with its appreciations (in future) the business of foreclosure buying and selling is associated with tricks and risks. So one need to be aware of these and also be prepared of these. Do your diligence in looking at houses and assessing the deals calculating where you can really profit from, talking to real estate experts before constructing good deals, etc will take plenty of investors' time nonetheless it will pay you in plenty too.
There are many foreclosure services available across the country; however, to get appropriate information on foreclosure properties, possible loans one can get, in order to make a quick decision, one can check www.foreclosure123.com. To get the loan reports, the possible profits, and detailed information on property etc, you can visit ForeclosureRepos.com.
Select a state in the list below for foreclosure listings of bank foreclosures for sale.
|Mortgage Type||Today||Last Week||Change|
|30 year fixed||4.19%||4.26%||-0.07%|
|15 year fixed||3.23%||3.27%||-0.04%|